Japanese insurer Tokio Marine Holdings plans to add agricultural, auto and life insurance policies to its offerings in Vietnam, the Nikkei Asian Review reported Thursday.
The Tokyo-based company will develop the agricultural insurance, which is not yet available in Vietnam, with a Vietnamese university, the newspaper said.
It said the government plans to cooperate with the firm in order to stabilize farm operations. Based on data and analysis on the effects of rainfall levels and temperature on crop yields, policyholders will receive payments when certain conditions are met.
For autos, Tokio Marine reportedly will work with Vietnamese dealerships affiliated with Japanese automakers to sell insurance to drivers when they buy new cars.
The company will also develop life insurance with Bao Viet Holdings, a local giant whose sales network spans 90,000 locations in Vietnam.
In May Tokio Marine raised its stake in Bao Viet Tokio Marine Insurance Co., a non-life insurance joint venture with Bao Viet, by 2 percent to 51 percent.
“With the middle-class population growing in Vietnam, demand for insurance policies will accelerate,” Tokio Marine’s President Tsuyoshi Nagano said, as quoted by Nikkei. “We plan to make the Tokio Marine brand take root in Vietnam over the long term.”
Official figures showed Vietnam now has 17 insurance companies, five of which — AIA, Bao Viet, Dai-ichi, Manulife and Prudential — controlled more than 75 percent of the market.
The Association of Vietnamese Insurers forecast the local insurance market to grow 20 percent this year.